Country Bird Holdings, the South African poultry processor, has warned it will shut one of its three abbatoirs in the country if the government does not provide the industry with support amid the "dumping" of products into the market from the EU.

Country Bird Holdings CEO Marthinus Stander said the South African poultry group would not seek another acquisition target should it decide not to pursue its interest in local rival Sovereign Food Investments.

Sovereign Food Investments, the South African poultry group that mounted a legal challenge against a takeover bid from local peer Country Bird Holdings, has said the country's government has ruled the offer contravened regulations.

Country Bird Holdings' bid to buy fellow South African poultry group Sovereign Food Investments has taken a fresh twist, with the takeover target claiming its suitor's move to change a key condition of its bid is illegal.